Hard to meet product delivery schedules due to Covid-19: Valuetronics

VALUETRONICS said on Wednesday that its factories at Huizhou in China's Guangdong province resumed operations this week, though some workers have been unable to return to work.

This will lead to a temporary drop in the production capacity of its factories, the electronics manufacturing services firm said.

"It is expected that the PRC factories will experience delay in resuming their operations to a level before the Chinese New Year holidays and will have difficulties meeting originally planned product delivery schedules."

The reduced production days and the temporary drop in production capacity may result in a revenue shortfall for the six months ending March 31, 2020, as compared with the same period a year earlier, Valuetronics said.

Some workers were unable to return to work as planned due to various administrative measures which have been implemented to curb the spread of the coronavirus outbreak, Valuetronics said.

These include the implementation of closed-off management in various Chinese cities and the suspension or limited service of transportation facilities in various provinces.

Valuetronics reopened its factories following a successful inspection carried out by the relevant government authority and the receipt of official notice for the resumption of operations.

The company said it is closely monitoring the situation.

Valuetronics shares fell half a Singapore cent or 0.69 per cent to S$0.715 on Wednesday.